Commodity Weekly: Heightened Intra-OPEC Competition on Horizon

With the efficacy of OPEC-led cuts clearly in doubt, it would behoove cartel members to prioritize individual self-interest. This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone. In the absence of any supply shock, oil markets will continue to be gripped by bearish sentiment for the foreseeable future. Many believe that the 1.8 million barrel per day production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) have not measured up in terms of speed or substance to bring global supplies back into balance by sometime in 2018. At the same time, the specter of unabated U.S. crude production growth in 2017 and 2018 has led many market observers to drastically reduce oil price forecasts – with some arguing that we are headed toward sub-$40 oil. Backing up these assertions is the fact that the U.S. rig count […]